Pentair Provides Business Updates Related to COVID-19 Impact
Previously, global demand remained healthy and Pentair was poised to deliver on results within its previously stated guidance range. Given the rapidly changing environment and related impacts, the company is withdrawing its previous First Quarter and Full Year 2020 guidance that it provided on January 28, 2020. The prior earnings guidance did not reflect any impact from COVID-19.
Pentair has experienced reduced production in several key facilities as the result of “shelter in place” orders and suspensions of operations in several facilities due to COVID-19. The company cannot predict at this time if additional disruption in its facilities may arise or to the extent to which demand will be impacted by COVID-19.
John L. Stauch, Pentair President and Chief Executive Officer said, “This is an unprecedented time, and our focus, like yours, is the health and well-being of our employees, our customers, and our communities. A crisis such as this reminds us that the need for water touches nearly everything we do. No matter who we are or where we live, we are all connected by our reliance on clean, safe water.
“Pentair is in strong financial condition and we believe we are well-positioned to navigate the uncertainty of the current environment. We are taking appropriate steps to reduce expenses and manage costs, reduce or defer capital spending, and closely manage our working capital. We believe the company has a solid balance sheet and adequate liquidity to navigate through these challenging times. While we cannot currently forecast the length of the disruption, we expect that based on our sound strategy and the resiliency of our business, we will be in a good position when the environment improves.”
The company plans to provide an update on Full Year 2020 guidance when it announces First Quarter 2020 results.
Source: Pentair plc.